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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Joe Wagner who wrote (31189)9/7/2000 10:05:28 PM
From: EJhonsa  Read Replies (3) of 54805
 
The irresponsibility shown by the marketing departments of certain optical switch vendors is truly phenomenal. The number of otherwise technically astute investors and writers they've fooled regarding the optical switch vs. router issue must be in the tens of thousands.

Let me go over the differences: what Sorrento, not to mention Monterrey, ONI, and Lucent are talking about when they flaunt their "wavelength routers" is an optical switch. What these so-called routers actually do is move around the beams of light upon which internet traffic is sent upon, from one optical fiber to another. These beams are akin to the tracks on a railroad system.

The packets of data that travel on these optical beams can be considered to be the trains that travel on these railroads. At network junctions, these packets have to be sorted out and told upon which tracks they should go. In other words, they have to be processed; and just as the Pentium or the Athlon within your PC has to process the information sent to it electronically, the same goes for the devices that process these packets of data. That is, unless someone invents an optical computer, a concept that's purely science fiction for now.

The devices that electronically process these packets, or rather their headers, which detail where they have to be sent, are better known as IP routers. You know, the boxes that companies like Cisco and Juniper make. I don't think that demand for these boxes will be going away any time soon.

Eric

PS - Here's the latest market share numbers for the router market. Juniper continues to chip away:

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